I've been looking at this area for a while now (from a home user and work user angle) for a while now.
If your video source is always going to be from a miniDV camcorder, then the AIW card is pointless. It is only good for digitizing analog video sources, and not especially good at that.
Home editing can be relatively cheap if you are Firewire based. Shoot your video on a DV camcorder (don't buy a DVD recorder one, get the actual miniDV tape), then you dump your video to the hard drive using the editing software (see next paragraph), edit it down, add your affects and titles, then you can output it back to your camcorder via firewire. If you need VHS copies, then you hook your camcorder to the VHS input and get a topnotch copy (much better than you'd get from a video card). If you want DVD output, your files will need to be compressed properly into MPEG-2 format. I love TMPEnc for this for quality and speed, but there are other good ones. Some of them just plain stink, though. Be sure it can do Variable Bit Rate Two Pass. It is the only method worth using. DVD authoring is another subject altogether.
Software to do the editing is another deal. There are lots of inexpensive ways to go. I own Roxio Vidowave 7, Pinnacle Studio 9 and Adobe Premiere 6.5 (I ordered the upgrade to Pro 1.5, but haven't gotten it yet). Of them all, Adobe Premiere is the one I can heartily recommend. Yes, it costs a LOT ($699 retail), but you can find it cheaper (like just over $200 at
http://www.academicsuperstore.com/ if you can verify that you are a student or a teacher). Pinnacle is good, but it isn't Premiere. Roxio Videowave isn't much, but it is easy and cheap.
I recently went to a vendor demo for a Turnkey video editing system. The sold AVID systems and Matrox RTX100 systems. I was blown away by the Matrox system. It uses the latest version of Adobe Premiere (Pro 1.5) and the things the Matrox add-in card does for video is amazing for the price. Total cost for the Pentium 4 computer (lots of RAM, lots of HD space, dual 19" monitors, etc..) was $4700 bucks. Having used two previous Media100 systems (one cost $60,000 and one cost $30,000), this does absolutely everything as well and usually better, plus I can avoid the Mac OS and hardware. My company will hopefully approve this purchase in the next few weeks. BTW, you could build your own duplicate Matrox RTX100 system for $3500 or less, but that isn't an option for my company. It must be turnkey.
any other questions or comments, let me know. I'm not a professional AV guy, but work with one and have developed a hunger for the stuff for home use.